Irish Lottery mired fraud allegations

Lottoland, Gibraltar-based licensed lottery operator, has accused that the National Lottery of Ireland retained millions of euros illegally.

According to Lottoland, the state agency is “retaining millions of euros each year in unclaimed prize money to boost profits and pay for the State license.”

Lottoland has been operating in Ireland since last year as one of several so-called “synthetic,” or secondary lotteries. According to The Irish Times, “Lottoland said its operation was much less of a threat to good causes than National Lottery operator, Premier Lotteries Ireland (PLI), which was allowed to pocket unclaimed prize money unlike lotteries in other jurisdictions.”

The head of Lottoland’s Irish operation Graham Ross told the newspaper: “It’s a bit ridiculous that we’re being made the scapegoat for a threat to good causes when there’s a much bigger issue relating to PLI’s own business.” And added: “I think it’s farcical to be going after a niche section of the industry that is going to drive innovation and competition in the best interests of the consumer.”

In a statement, PLI said: “Under the terms of the licence, unclaimed prizes have to be used within 12 months, and this is monitored by the regulator.”

“As previously stated we use unclaimed prizes to promote the National Lottery in order to increase our contribution to good causes,” and continued: “The amount that goes back to good causes is ring-fenced within the licence, regardless of whether prizes are claimed or not.”